South Korean stocks slide on AI investment concerns

South Korean stocks declined on February 2, 2026, amid concerns over interest rate trajectories and AI investment sustainability.

The Kospi dropped 4%, its largest decline since November 21, with Samsung Electronics and SK Hynix falling over 4% each.

Investors sold off high-growth tech stocks, citing worries about Federal Reserve chair nominee Kevin Warsh and volatile metal prices.

Additionally, Nvidia CEO Jensen Huang’s statement that the proposed US$100 billion investment in OpenAI was “never a commitment” dampened market sentiment and raised doubts about future AI funding.

Market analysts noted that Huang’s comments triggered profit-taking and contributed to unwinding crowded trades.

Overall, investor sentiment remained weak across the Asia-Pacific region, with the MSCI Asia Pacific Index falling 1.7% on the day.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

Chip stocks fall after a stretch of profit gains

Samsung and SK Hynix shares slid after both posted much higher quarterly profit, helped by AI memory demand, rising prices, plus a supply crunch.
Samsung’s fourth-quarter operating profit jumped more than 200% from a year earlier 1.
SK Hynix reported a 137% year-over-year rise in fourth-quarter operating profit, while High Bandwidth Memory (HBM) revenue more than doubled 2.
Analysts described a “supernormal profit environment” tied to a record supply shortfall, which boosted pricing power plus lifted shares before this pullback 3.

A possible Fed shift could cool AI risk-taking

Investor worry around Fed nominee Kevin Warsh raises questions about the financing conditions that have supported AI valuations.
Warsh has a hawkish reputation, and tighter policy could drain liquidity from risk assets such as AI stocks plus cryptocurrencies 4, 5.
That setup could deflate an AI bubble. It may separate companies with durable unit economics from firms leaning on easy funding and hype 4.
Heavy selling in suppliers such as Samsung and SK Hynix suggests investors now question how long AI-driven growth can last in a tougher macro backdrop.